Checklist – Due Dilige



Checklist – Due DiligenceUser instructionsAdapt this checklist to suit the complexity of your procurement activity. OptionsSuggested checksReferee checks(referees must be relevant to the goods/services you’re purchasing, and recent or current customers)What’s your relationship with the supplier?What types of goods or services have you purchased?Is the supplier currently providing you with the goods or services?Has the supplier’s performance been: on time? to the required specifications? within budget?How would you rate the quality of the goods or services delivered?How accurate is/was the supplier’s reporting and invoicing?Where has the supplier performed well? What could it improve?How much contract management does/did the supplier require?Have there been any issues? If yes, how well were they handled?Have there been any concerns around honesty or trustworthiness?Would you use this supplier again?QualificationsDoes the supplier legitimately hold the academic qualifications or professional status it claims in its CV?Has the supplier held the job positions and completed the work experience it claims in its CV?Analysis of ownershipCheck that the business is a legal entity. What sort? Check who owns the business. Is there a parent company? How long has it been in business?Is it New Zealand based, offshore or part of a multinational?How many staff does it have in total? How many staff will deliver against this contract?Check there are no actual, potential or perceived conflicts of interest.Analysis of deliveryAnalysis of delivery (cont)Undertake a comprehensive check of the supplier’s delivery.Can the supplier provide reliable referees for similar work? (They must be recent.)Do the supplier’s staff have the capacity, capability and expertise to deliver?Who is the contract manager/account manager? Ask for their CV.Does the supplier have systems and processes to ensure delivery?What are the supplier’s systems and processes for managing contract implementation/service-level agreements?What processes and methodology does it use to check and maintain quality?How is reporting managed – by whom? How are reports checked?What risk management analysis has been done on the contract?How comprehensive and effective is the risk management plan?Does the supplier have a licence for all copyright in the deliverables?How are confidential records stored?What processes does the supplier use to stimulate innovation in delivery?How does the supplier handle exceptions or variations?Does the supplier comply with New Zealand product standards (if appropriate)?Check the staff policies on code of conduct and confidential information.If appropriate, can the supplier verify sustainably sourced goods?Is there any industrial relations history or current issue/s?Analysis of financesCheck the supplier’s current and future financial viability (for the expected contract duration).View copies of the provider’s annual reports for the past three years. View a copy of the last independently audited accounts. Check profitability and liquidity.Undertake a credit check e.g. with Baycorp/Veda Advantage.Check evidence of insurance (if required).Assess any material risks e.g. pending litigation. Check whether there are any current or pending issues with Inland Revenue. Ask the supplier to confirm.Are there any bank or third-party guarantees?Site visit – supplierVisit the supplier’s premises – check operational conditions.Witness a demonstration of its capabilities.Talk to key staff. What works? Where are any problems?Check regulatory compliance e.g. OSH certificates and procedures.Site visits – customersHave the customers purchased the same types of goods or services that you are intending to purchase?Has the supplier’s performance been: - on time? - to the required specifications? - within budget?Verify the quality of the goods or services delivered.Where has the supplier performed well? What could it improve?Have there been any issues? If yes, how well were they handled?Would you use the supplier again?ResearchDo a media check on the supplier and its business.Check its reputation for quality goods or services.Check its reputation for innovation.Check if its products have been independently tested. Has the supplier won any industry/professional awards?Security checksDoes the supplier have any convictions that could compromise the contract?Are there any pending criminal cases that could compromise the contract?Can the supplier obtain and maintain security clearance (if required)? ................
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